A councilor is demanding answers about why a private company was allowed to pursue plans to build a high-end restaurant on the grounds of Casa Loma, without the city consulting the public or council about how the proposal would affect the historic landmark.
The site at issue is the north complex of Toronto’s century-old hilltop castle. The 2-acre property is separate from the main grounds at Casa Loma, and consists of a five-storey Gothic tower overlooking stables, a hunting lodge, potting shed and garage.
Coun. Josh Matlow (Ward 12, Toronto-St. Paul’s) says he only learned of Liberty Entertainment Group’s plan to build a restaurant at the site late last year when his constituents began sending him emails asking why crews were doing work at the property.
Matlow claims Liberty, which leases Casa Loma under an agreement with the city, intended to build a restaurant there “without any real oversight or accountability.”
Although the company has since abandoned the plan, the councillor says city staff have provided conflicting information about whether a restaurant was allowed at the site, and he’s concerned that until he intervened one of Toronto’s most beloved public properties was on the verge of “quietly being turned over to a private interest.”
“It seems as clear as day that the Liberty Group should not have been allowed to get so far along … without public consultation being done in any earnest way, and without an item coming to council,” Matlow said.
Liberty president Nick Di Donato confirmed his company had planned to relocate the Don Alfonso 1890 restaurant to Casa Loma’s north complex. The pricey establishment, which is the Toronto outpost of an Italian Michelin-starred restaurant, had operated as a pop-up in the conservatory of the main castle during the pandemic, and would have had 65 seats at the new location.
But Di Donato said the company did nothing wrong and its agreement with the city allows for a restaurant on the site. He denied starting construction on the restaurant itself, but acknowledged Liberty had begun work to restore the potting shed at the north complex, which he said the company had permitted for.
A separate application filed with the city last year shows plans to build a kitchen, washroom, covered walkway and “food sampling lounge” in the stables and potting shed. Di Donato said Liberty had yet to receive permits for that work, and the company informed Matlow more than three weeks ago it had dropped its plan because of “a few community member objections” and the time the process was taking.
He said Liberty has “done some great things” to make Casa Loma “a facility that Torontonians are proud of” and decided to scuttle the restaurant plan to avoid conflict.
Liberty won a 20-year contract to manage and operate the main house and grounds at Casa Loma in 2013. Matlow and the city both said the company has done a commendable job revitalizing the property, which was completed around 1914 and for decades had underperformed as a tourist attraction.
Since taking over, Liberty has made $11.9 million in capital improvements and paid Toronto $11.2 million in rent and other proceeds, according to the city. The company operates the site as a tourist destination and events venue, and in 2017 opened the BlueBlood Steakhouse in its main building.
When the company secured the agreement in 2013, council directed the Casa Loma Corporation, a city company whose board is made up of municipal staff, to review options for what to do with the north complex.
Council had floated the idea of establishing a Museum of Toronto there, but a city report from the time said its buildings had limited electrical capacity, no plumbing or HVAC systems, and could require at least $20 million in repairs.
Council directed the city manager report back on the review, which was to include “significant” community consultation. In the meantime, Liberty agreed to lease the north complex on an “as is” basis and to operate it as a “heritage experience,” in addition to overseeing the main grounds, according to the report.
It doesn’t appear staff ever reported to council about a review, or formally sought council’s approval for what to do with the site. This week, the city did not explain why.
Instead, the city held a single public meeting in February 2015, and two months later issued a request for proposals for the north complex. Liberty submitted the only qualified bid.
According to Liberty, the two sides have never finalized a separate lease for the north complex, but the company has continued to operate it under the terms of its 2013 agreement, using it to stage seasonal events like holiday light tours.
in to written response Tuesday to an administrative inquiry that Matlow submitted about the issue, city manager Chris Murray said Liberty would require formal consent from the city to change the use of the north complex and build a restaurant there, and the city has never given it.
Murray denied Matlow’s claim that city staff had at points told the councilor and residents that the lease allowed a restaurant at the north complex, and said staff had merely “clarified the conditions under which it would be permissible.”
Murray said the city intends to conduct an analysis to determine a “future use” for the north complex.
Robert Levy, president of the Casa Loma Residents Association, said he hopes the aborted restaurant plan will kick start a new process to revitalize the site, this time with public input.
“An asset as important as Casa Loma should not just be a company’s private enterprise,” he said. “If they’re going to go and change it, how can we not have a proper, transparent process?”
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